Swisscom, the telecommunications company engaged in "intense discussions" with the Swiss government over a ban on foreign takeovers, is eyeing a bid for Italian broadband company Fastweb. A bid would pitch it directly against at least five buy-out firms.

The Swiss government, which is selling down its 66% stake in Swisscom to 50% plus one share, told the company last week that it could not make foreign acquisitions for the next 12 months in order to return cash to shareholders.